(1) An undertaking whose head office is situated in the State shall establish an adequate solvency margin in respect of its entire business in accordance with this Article.
(2) The solvency margin shall correspond to the assets of the undertaking, free of all foreseeable liabilities, less any intangible items, and in calculating the amount of the solvency margin the following shall be considered: -
(a) the paid up share capital or, in the case of a mutual concern, the effective initial fund,
(b) one-half of the share capital or the initial fund which is not yet paid up, once the paid-up part reaches 25 per cent of this capital or fund,
(c) reserves (including both statutory reserves and free reserves) not corresponding to underwriting liabilities,
(d) any carry-forward of profits,
(e) in the case of a mutual or mutual-type association with variable contributions, any claim which it has against its members by way of a call for supplementary contribution, within the financial year,